Sandy's economic impact could reach Alabama

MONTGOMERY, AL (WSFA) -

It's still early, but economists say Superstorm Sandy could have a major impact on the economy, not only in the Northeast, but also here in Alabama. Initial estimates say there could be a $30-$50 billion dollar impact from Sandy and that may be a conservative figure.

Economists believe there will be definite winners and losers. Winners include the construction and lumber industry. Millions were affected by the storm in the Northeast Corridor, and there's a lot that needs to be rebuilt.

"We will see some impact we can send the construction people up there," said Dr. Keivan Deravi, an economist with Auburn University-Montgomery. "We can send lumber up there, we can send wood product up there."

Deravi said losers include retail interests.

"All of those retail folks that draw a large portion of their income from the holiday season in the fourth quarter," Deravi said. "To the extent that they depend on New York producers to get them the material, they're going to be short. All over the United States, even Alabama, no matter where."

But while the economy could take a hit in the short term, in the long run, recovery efforts could contribute to economic growth.